On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,974,000. At that time Sharp Company had common stock of $1,525,000 and retained earnings of $705,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $102,000 and a book value of $80,000. The outstanding bonds were issued at par value on January 1, 2008, pay 9% annually, and mature on January 1, 2018. The bond principal is $497,000 and the current yield rate on similar bonds is 7%. Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper on the acquisition date. (Round present value factor calculations to 5 decimal places, eg. 1.25136 and final answers to decimal places, eg. 5,125.) Parent Share Non- Controlling Share Purchase Price and Implied Value 1.974,000 49 Less : Book Value of Equity Acquired 1784000 i 446000 Difference between Implied and Book Value 190000 4 Land 17600 i 4400 Premium on Bonds Payable 32605 815: Balance 205005 5 Goodwill 205005 i 51251 Balance $ 0 $ Non- Controlling Share Entire Value $ 493500 $ 2467500 446000 i 2230000 i 47500 237500 4400 i 22000 i 8151 PE i 40756 i 51251 256,263 51251 i 256,263 i $ 0 $ i Prepare the workpaper entries necessary on December 31, 2013, to allocate and depreciate the difference between book value and the value implied by the purchase price. (Round answers to decimal places, eg 5,125. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Land 22000 Goodwill 256,263 Interest Expense Unamortized Premium on Bonds Payable Difference between Implied and Book Value 237500